Wix.com Ltd. ($WIX) Earnings (Q1 FY22)

 Wix.com Ltd. ($WIX) Earnings and Opinion:


Wix.com is a company in the Technology sector and operates in the Software-Infrastructure industry. The company develops and markets a cloud-based platform that allows users to creates websites. Wix.com was incorporated in 2006 and is currently headquartered in Tel Aviv, Israel. The company was first introduced on the stock market in 2013.

Wix.com EPS and Revenue (Q1 FY22):

  • EPS of -$0.72 missing expectations of -$0.61
  • Revenue of $341.60M beating expectations of $340.47M
Wix.com Q1 Highlights:
  • Revenue was up 14% Y/Y
  • Gross margin of 61%
  • Net loss of $41.4M
  • Free cash flow of -$33.6M
Opinion:
Wix.com stock declined today after the company reported earnings before the bell this morning. The company missed on their EPS expectations, but was able to beat on their revenue expectations. The revenue showed some good signs of growth on a y/y basis. The gross margin is very impressive, but it probably doesn't cost a lot for them to produce their product. Their expenses come from more of their operating side of things, rather than their cost of their revenues. Wix.com reported a loss on income in this quarter, which has been a common morale of the story for the company. With only a couple profitable quarters in the history of the financial statements for Wix, it is no surprise to see this. The thing that surprised me was the cash used for capital expenditures. They seem to be spending a lot of money still investing back into the business. This is very interesting for the fact that the company has been around for a decade and a half. However, I feel like competition is tight in this space with no room for error. That's why Wix has to put up a lot of money to keep operations fluid. The company does look better than this earnings report shows. Wix.com is currently trading at around 3.01 P/S and a P/B ratio of 26.22 (high growth company). The revenue is currently growing at around 28% (TTM) and shows some good growth rates on forward earnings. Wix.com has more cash on hand than debt too, which is a good sign and maybe turning towards stable profitability. Personally, I see this one as a little iffy. It is hard to grasp what exactly the companies intentions are. I have heard from people using this site, that it can be difficult, but is also more safer than competitors. I am going to stay away from this one, just because of the high risk I see still. I do see a little bit of upside however, but that won't come for a while. If you are interested in buying, put this as a long-term play for some upside in the future.

*Information from Wix.com, Google, Yahoo Finance, CMLVIZ

Comments

Post a Comment

Popular posts from this blog

Weekly Earnings Review: September 25, 2023- September 29, 2023

     It was a nice little break in the earnings report, but just like that we are back! We are slowly easing our way back into earnings season. However, this week marked the end of Q3 and September. September was a downturn from the rally we saw earlier in the year. There is a lot of stuff looming as the government is set to shut down on October 1st. The Fed is keeping a close eye on inflation but this weeks prints showed some signs of improvement. The average consumer is struggling as savings keep dwindling. In terms of our earnings, we just had two companies that reported this week. One is a warehouse style retailer and the other is a wide range consulting firm.  Tuesday, September 26, 2023 Costco Wholesale Corporation (COST)-     Costco beat expectations on both the top and bottom line. The stock saw a decline after the initial earnings report, but by the end of the week it has hit a new 52-week high. The revenue growth was impressive as it grew by a hair under 10%. The COGS growth
Read more

Weekly Earnings Review: October 16, 2023- October 20, 2023

      Well earnings season is finally among us, so we will start producing more beefier blog posts and cover a lot more companies over these next few weeks. I had one company report last week that I decided to throw into this weeks post, because I felt that it was pointless to make a post with just one boring company. With the inclusion of that company, we will cover 7 companies that report earnings this week and will give your our thoughts and opinions on how they performed during the quarter and the outlook. There is a lot of controversy going on with a war breaking out in Israel and the House of Representatives with out a speaker. This year seems to be the year of how geopolitics affect the market. There seems to be a lot of confusion with the outlook of the market right now, but inflation numbers still look to be fair and the earnings of major companies will be able to tell us a little bit more about where this is headed.  Thursday, October 12, 2023 Walgreens Boots Alliance (WBA)-
Read more

Weekly Earnings Review: November 27, 2023- December 1, 2023

Image
     Stocks continue to rise as we enter the final month of trading for the year. The S&P 500 and Nasdaq had another stellar month. Bond yields continue to fall, as interest rates have seemed to reach their peak. Estimates are all over the place when it comes to when cutting will start and how many cuts we will see next year. I added a new mantra to particular companies. I want to add some visual pieces to the post to entice the readers. Hope you guys enjoy the visuals and the excerpts. Stay investing! Monday, November 27, 2023 Zscaler (ZS)-      Zscaler continues to carry its momentum, as the company beat on both the top and bottom lines. The company achieved 40% growth on the top line and saw impressive growth on the bottom line as well. Management raised guidance and are expecting around 30% growth on both the top and bottom line. What is so impressive about this company is that they are achieving high growth and high profitability. This is a feat that a lot of software companie
Read more